Shorting Apple - there is a suggestion afloat that super bears should short Apple, AAPL.
Really Reaally Bad idea.
Remember that recession thing ?
calendar year Revenue, Billions USD
2007 24.0
2008 32.5
2009 42.9
last 4 qtrs 61.1
You can clearly see the dip in Apple sales ...oh wait, there is no dip in Apple sales.
Well, gross margins have dropped...opps again, they were 35% in 2008 and 40% in 2009 and the last four quarters are about 43%.
The p/e is high at 18 for a company that is in the stagnant, low margin, computer business, which has to depend on retail channels (or Apple stores), and hasn't found a way to monetize the internet.
[What about iTunes ? why that kid stuff, I'm trying to be bearish here - don't you know the sky is going to fall ?]
Anyway, they are having production problems and can't keep anything in stock.
They depend on a few hit products - okay, a bunch of hit products.
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The acceptance of the iPad is great and this is still the first version of the product. There will be a new, slightly smaller size iPad out, maybe by January, and that will be on an entirely new supply chain, so it can push up sales even more.
>>> Look at how Apple defied the Recession. Look at those sales increases.
>>> Do you want to stand in front of this train as the world economy gets better ?
>>> I sure don't. |
